One of the most important roles of organizational leaders is to keep track of the state of their company’s internal environment. Failure to do so can lead to various business challenges, which may interrupt normal firm operations as seen the cases of Engstrom Auto Mirror Plant, a privately held business that engaged in the manufacture of mirrors for vehicles. Even though the employee compensation plan that was adopted by Engstrom Auto Mirror Plant was successful and lived up to its expectations, it failed the test of time. This section of the paper will examine the issues associated with the Scanlon Plan, a remuneration program that was implemented by Engstrom Auto Mirror Plant, and the controversy it caused. For instance, according to Beer and Collins (2008), the Engstrom Auto Mirror Plant, a privately held company that employs 209 people, had been numerous bumpy instances. For over a year, the firm’s plant supervisor, Ron Bent and his associate, Joe Haley, had engrossed their end of week get-togethers on the worrying company numbers. However, the mood of their May 14, 2007 consultation was not the same.
Based on the facts presented in the case study, there is no doubt that reduced productivity is one of the challenges affecting Engstrom Auto Mirror Plant. The issue of productivity in any business is usually connected to an organization’s workforce and their behavior at the company. Some of the challenges that Engstrom Auto Mirror Plant is experiencing are lack of goal setting, communication, and trust between employees and the management, product quality problems, the absence of effective staff incentive program, and reduced employee motivation.
Direction for the Case Study Analysis
There is a need for leaders to be aware of the issues facing their organizations and be able to adapt and execute rules or regulations that can counter disruptive activities. Failure to do so, such challenges can be an obstacle, more so when it comes to achieving growth. The case of Engstrom Auto Mirror Plant is an indication that even a properly laid out strategy can damage the trust between management and the employees. The case also demonstrates how lack of instant remedies to organizational challenges can damage an efficient working mechanism. It is also evident that employees cause most of these issues. This paper seeks to analyze the case of Engstrom Auto Mirror Plant by examining the issues facing the organization as well as the effects of employee behavior. There will also be a discussion on the different issues pertaining to the company and solutions to the problem by applying human behavior theories. Additionally, the paper will examine the real-life problems experienced in the workplace as well as solutions to the challenges.
II. Root Cause Case Study Analysis
Root Causes of Known Organizational Issues
The issues facing Engstrom Auto Mirror Plant can be linked to some factors mentioned in the case study. Some of the problems that contributed to the challenges experienced by the company include productivity, communication, lack of trust between management employees, poor product quality, and reduced employee morale and motivation. The subsequent sections of this paper will examine these causes from a human behavior perspective in a bid to present broad details of each cause and explain they occur in the workplace.
Analysis of the Root Causes from a Human Behavior Perspective
Productivity, as outlined in the case, is a major challenge facing Engstrom Auto Mirror Plant. According to Beer and Collins (2008), surviving the downturn was a major challenge for the company due to the low level of performance. There was a significant difference in the cost due to reduced productivity at the company. In most cases, productivity is defined by the ability of workers to achieve a particular goal. For instance, the goal could be to sell a certain number of products in a given duration of time or getting consumers to purchase life insurance. Therefore, it is important for an organization to set goals if workers are to understand what they need to accomplish.
Product quality is also another issue evident from the case. For instance, the company was shipping products that had not undergone quality checks. As much as the company had achieved certified supplier status, shipping products without proper inspection could have negatively affected the firm, more so if a customer had received a defective mirror. This turned out to be one of the reasons for the drop in quality of product coupled with lack of motivation and morale among employees. At a certain point, it seemed that Engstrom Auto Mirror Plant was more focused on mass production rather than quality. Mass production, in this case, is the manufacture of goods in large quantities, more so by machinery (“Mass Production Defined,” n.d.). Engstrom Auto Mirror Plant was focusing on getting as many mirrors out in the market as they could instead of emphasizing the basic quality of the product. Largely, it could be argued that it was the firm’s business model, which, in this case, was not taking care of employees in an efficient manner.
As mentioned above, lack of effective communication and mistrust between the management and employees was also another cause of the problem Engstrom Auto Mirror Plant was experiencing. Communication is vital because it ensures that members of an organization speak in one voice when it comes to a given issue. It is evident that there was not much communication between the plant’s management and employees. Engstrom Auto Mirror Plant had about 209 personnel, and not all of them spoke in unison when it comes to the company matters. Therefore, it could be argued that it was one of the causes of quality issues. Without effective communication, workers cannot know what is expected of them.
Similarly, it would be difficult for the management to give employees the recognition that they deserve if there is no communication. Moreover, lack of communication also led to mistrust between personnel and the management, as doubts arose regarding the fairness in the awarding of the bonuses under the Scanlon Plan. Trust is a vital element when it comes to ensuring effective communication and successful teamwork (Krot " Lewicka, 2012, p.1). The fact that trust was not clarified led to increased level of dissatisfaction among employees, consequently affecting the overall firm performance.
Finally, it is evident that the Engstrom Auto Mirror Plant lacked an effective incentive program to motivate staff. According to Heathfield (2018), recognition incentives comprises of aspects such as praising workers, offering words of thanks, presenting productive personnel with a certificate of recognition, or declaring an achievement at a company gathering. Furthermore, employers can provide recognition enticements as part of a total company staff appreciation plan (Heathfield, 2018). In a case where an employer does not have an effective incentive program, it is highly likely that workers would not be motivated, and there will be no unity at the workplace, as seen in the case of Engstrom Auto Mirror Plant.
III. Solutions Development
There is no doubt that the current strategies adopted by Engstrom Auto Mirror Plant are not working. Therefore, solutions to the above problems are essential if the company is to achieve meaningful growth shortly. There is a need to make the business more efficient by making employees productive. This section of the paper will examine possible solutions that can be adopted by Engstrom Auto Mirror Plant in a bid to address the challenges.
Organizational Improvement Outcomes
Understanding employee behavior is crucial in identifying staff needs and responding to their problems in an effective manner. In the case study, Bent and Haley were talking about hostile employees approaching them with complaints. According to Beer " Collins (2008):
Haley said, “Ron, we both know the employees have been complaining for months, but yesterday and today the talk has been pretty hostile. I’m not saying there’s a definite connection between nearly late delivery and the grumbling I heard, but you’ve got to wonder.”
The above discussion is an indication of the problems that the company was facing as well as how it might have affected employees’ productivity. In a bid to come up with the solution to the challenges, there will be a need to examine employees’ behavior at the workplace.
The article “Why Should Managers Study Human Behavior?” examines the theory of behavioral management. Additionally, it provides a way through which managers can understand their employees and generate solutions to their problem (Why should Managers Study Human Behavior, 2016). According to the article, behavioral management theory provides a basis through the management understand their staff as a way of building successful organizations (Why should Managers Study Human Behavior, 2016). Employers need to comprehend how workers’ satisfaction level and senses of devotion could impact their work morals, and consequently their overall performance (Why should Managers Study Human Behavior, 2016). At the same time, dedicating time to observe employees and build relationships with staff gives workers the courage to approach the management in case of any problem (Why should Managers Study Human Behavior, 2016). Based on the case study facts, Engstrom Auto Mirror Plant realized the need to monitor employee actions when it had already affected the company significantly. It is important to monitor in time the anomalies in the minds of personnel arising from mismanagement or due to lack of transparency. Also, in such cases, a firm needs to implement necessary measures of countering any challenge on time. Failure to do so might worsen the situation, thereby making it difficult for a company to respond effectively.
After observing employees behavior, it is equally important to engage them by organizing a meeting between staff and the management. During such meetings, workers are supposed to be encouraged to lay out any concerns pertaining to work within the plant. For instance, productivity challenges can be partly attributed to miscommunication between management and the employees. At the same time, when there is low productivity, workers lose faith in their workplace. At the same time, communication contributes to a lack of understanding of what the management expects from staff. Therefore, adopting strategies that could improve communication within the company can go a long way in reducing the impacts of the problems currently being experienced.
Organizing meetings will go a long way in ensuring that employees take part in the decision making the process at Engstrom Auto Mirror Plant. According to McDade (2013), workers assemblies can provide platforms through which personnel can be part of the decision-making process of the organization since employees can present their opinions and ideas in a more acceptable and structured manner (McDade, 2013). In other words, meetings make employees feel like they are part of something. As such, such initiatives can ensure that workers participate in making Engstrom Auto Mirror Plant productive again.
Recommended Strategic Options
The management at Engstrom Auto Mirror Plant needs to formulate goals that can ensure that employees are committed to the company again. When setting objectives, the company would need to recognize aspects that relate to what workers want to accomplish both in the short and long-term. At the same time, the goals need to be realistic and achievable. A short-term objective, in this case, is something that most workers would want to achieve in the near future (What is a Short-Term Goal, 2018). On the contrary, a long-term goal is something employees would want to attain probably after more than one year (What is a Short-Term Goal, 2018). In a sum, goals are essential because when they are accomplished, they give employees the morale and motivation to continue doing an exceptional job and to meet productivity objectives. For instance, the plant manager at Engstrom made a goal for himself to attaining an objective in having a motivation program at the business.
Bent strongly understood the importance of employee incentive program and sought to institute one at the mirror plant. Given his knowledge of various types of incentive plans and studies he later took, he had strong ideas regarding the kind of plan that might be successful at Engstrom. He had experienced a motivation plan that rewards individual workers rather than groups for performance at a camshaft plant he had worked at before. The incentive program provided the basis through which individual employees would be more productive given that they are competing for inducements such as raises. As search, it raises morale, as well as guides, improved productivity since it is an indication that the personnel is appreciated in the workplace.
The first form of motivation that the Engstrom can incorporate in the business is the compensation incentive. Among the incentives are issuing bonuses raises, stock options and profit sharing (Heathfield, 2018). Businesses can adopt this type of incentive when its staff is putting extra effort into ensuring the company realizes its overall goal. Additionally, the organization can include sign-on-bonuses, as they are essential to attracting and retaining talent. Such incentives will ensure that the employees are much more dedicated to accomplishing their responsibilities if they are to be recognized by the superiors. Also, Engstrom could offer discounts in phone plans as a way of motivating the staff and ensuring increased commitment to assigned roles and responsibilities. Overall, such an incentive is essential more so among workers who are not reimbursed highly considering that the benefits at times compensate for the ideal salary.
Engstrom can also adopt the recognition incentive as part of its overall worker's recognition scheme as a way of dealing with the issue of low employee morale. Recognition incentive entails actions such as publicly acknowledging the efforts of its staff praising the personnel, issuing certificates for major employee accomplishments (Heathfield, 2018). Most of these incentives are normally given at parties or luncheons that organizations offer for their employees. Additionally, they could be presented during important events. Such initiatives can provide an opportunity through which Engstrom can recognize workers who put in extra for the sake of the company.
Another important form of incentive that Engstrom could adopt to enhance the company’s performance is the reward inducement. According to Healthfield (2018), reward enticements can comprise gifts, financial rewards, service award offerings, and items such as performance certificates. Other examples include staff referral awards that some firms use to induce workers to refer suitable job candidates who can help the company (Heathfield, 2018). Such rewards can be offered as a prompt of the staff’s work ethic while working on projects. In doing so, the company will aim to enhance motivation within the workplace.
Appreciation incentive is also another form of inducement that Engstrom Auto Mirror Plant can use as part of its reward program. In his article, Heathfield (2018), recognizes appreciation incentives as a form of inducement that includes company funded events activities such as parties and celebrations, firm-paid family events, ice cream gatherings, birthday festivities, sporting occasions, paid group lunches, and funded sporting teams (Heathfield, 2018). During such events, workers can be allowed to invite their families, who can bond with employers and learn more about the vital role the staff play in the organization. Such activities contribute to creating a conditioned response such that more employees will work harder to achieve the rewards. Classical conditioning, in this case, operates under the notion that the staff will continue to show commitment to their duties when they are appreciated. Mcleod highlights that the classical conditioning theory entails acquiring a new habit through association (2018). As such, the behavior of Engstrom’s personnel can be changed if the staff is rewarded for favorable habits and motivated.
Also, it is important to understand the possible solutions to the product quality issues that Engstrom was facing. Albeit certified, the facility was not being inspected thus the possibility of shipping and selling poor quality items. It can be argued that the lack of motivation and morale can contribute to such quality issues, as the staff fails to deliver on their duties. To solve the problem, Engstrom should implement a Scanlon play or adopt an incentive-oriented scheme to enhance performance and meet organizational needs. However, to ensure effectiveness, the firm must ensure that the employees are directly supervised when preparing the products for shipment. Additionally, Engstrom should hire private inspectors to ascertain their product quality standards before presenting the items to their target market.
IV. Workplace Analysis
Workplace Organizational Issues Drawing From my Experience
This part of the paper is a discussion of my personal experience while working in a workplace that had work-related issues. A while back, I was employed at a telemarketing company, marketing insurance policies to elderly individuals. In particular, I engaged in selling In particular, we sold and marketed health, life, and other insurance policies to customers. I spent most of my working time on the phone in a bid to meet my monthly quota. In the process, I had a few breaks. The situation subjected me to a lot of stress, but I had to work so that I can earn money that could help sustain my family.
One of the issues that I had while working at the firm was that there were no incentives. The company was only paying monthly wages, and there was nothing more that could motivate an employee to continue staying when conducting any work-related activity. If there was any extra money that I could say was meant for us was given to the supervisor in the form of monthly raise. As such, employees were not given any form of incentives, a situation that led to a lot of resentment among workers.
Additionally, the company never organized appreciation events such as Christmas parties within the workplace. I had acquaintances in various organizations who took part in social activities such as dinner that was organized and funded by their employers as a way of showing appreciation to their staff. Unlike my employer, some firms offered Christmas bonus to workers who performed well. Largely, there was a significant difference in the manner in which other organizations incentivized their personnel, an aspect that was demoralizing.
Another problem that was evident at the workplace was the issue of trust. In many instances, the supervisor would go into the office and fail to come back while we worked. According to Krot and Lewicka (2012), current research has highlighted the significance of trust for a person’s wellbeing within the business setting. In other words, trust is a crucial aspect of successful communication and collaboration between members of an organization as well as between managers and employees (Krot " Lewicka, 2012, p.1). The discussion below is essential because it examines trust as a building block between supervisors and their subordinates.
Analysis of the Root Causes From a Human Behavior Perspective
From the human behavior perspective, thrust is vital for employees to thrive in the workplace (Krot " Lewicka, 2012, p.2). As I had mentioned above, the supervisor was not always available when we had work-related issues. This was an indication that he did not care much about his subordinates’ wellbeing. The fact that he was not always available when we needed him created trust issues between employees and the company. As outlined by Krot and Lewicka (2012), trust refers to the expectation and the belief that two parties will act to secure common benefit. As such, trust is mainly established by mutually beneficial behavior that was exhibited in the past. At the same time, trust and cooperation are improved by meeting the expectation of equally beneficial behavior in the present (Krot " Lewicka, 2012, p.2). My supervisor’s past actions were the reason why I did not believe in him in the present.
As stated above, employee turnout was high at the company. As a result, remaining employees had to spend many hours working overtime. I had to work overtime, a situation that led to burnout on the, and the main reason I stopped working at the firm. In many cases, work-related burnout can significantly reduce employees’ level productivity. For instance, according to Maslach and Leiter (2016), work burnout is widely recognized as an occupational hazard. It was challenging to work in such an environment, and I was always not motivated to come to work every day.
Conclusion
In conclusion, this case study analysis has provided insights into the mistakes that Engstrom Auto Mirror Plant made, which contributed to the poor performance registered by its staff. The workplace environment and the lack of motivation were among the major factors associated with low employee productivity. The main issues that the firm was facing were ineffective communication between the supervisors and the subordinates, lack of employee benefits and incentives, poor product quality, and the need to set attainable goals. The analysis thus recommended some solutions that would help the company tackle the problems it was facing.
Applying human behavioral theories and concepts to an actual workplace has resulted in many enlightening insights. For instance, it is clear that organizational goals can be realized through effective coordination at work. Bringing the staff together ensures that there is a healthy communication channel among the employees from which the can present any problems they are facing. Additionally, based on Maslow’s hierarchy of needs theory and Hertzberg’s two-factor theory, workers have certain needs that ought to be met if they are to remain productive and motivated. For instance, Maslow explains that money is the essential need for employees in the lower economic class and thus offering them a higher compensation will keep the staff motivated. Lastly, the analysis has recognized that setting clear organizational goals is a critical factor in determining staff performance. Additionally, the working conditions are also essential to realizing a higher performance in the firm.
References
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